The Nikkei 225 inched up 0.01% to close at 64,999 on Wednesday, while the broader Topix Index declined 0.52% to 3,918, as Japanese equities surrendered earlier gains amid profit-taking after a powerful rally to record highs. Market participants also stayed cautiously optimistic that the US and Iran could still reach a peace agreement despite renewed hostilities in the Middle East.
Domestically, Bank of Japan Governor Kazuo Ueda cautioned that rising oil prices are adding to inflationary pressures, but he stopped short of indicating whether the central bank will raise interest rates at its next policy meeting.
Technology and artificial intelligence-related stocks led the pullback, with notable losses in Kioxia Holdings (-3.1%), SoftBank Group (-7.3%) and Fujikura (-3.6%). Other major index heavyweights also retreated, including Furukawa Electric (-6.7%) and Murata Manufacturing (-3.2%).
